Jung v. Association of American Medical Colleges

184 F. App'x 9
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 1, 2006
DocketNos. 04-7023, 04-7138
StatusPublished
Cited by22 cases

This text of 184 F. App'x 9 (Jung v. Association of American Medical Colleges) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jung v. Association of American Medical Colleges, 184 F. App'x 9 (D.C. Cir. 2006).

Opinion

JUDGMENT

PER CURIAM.

This appeal was considered on the record from the United States District Court for the District of Columbia and on the briefs and arguments of the parties. It is

ORDERED and ADJUDGED that the District Court’s August 12, 2004 order and judgment be affirmed. The District Court did not err in dismissing the complaint with prejudice pursuant to Rules 12(b)(6) and 12(c) of the Federal Rules of Civil Procedure on the grounds that plaintiffs could “prove no set of facts in support of [their] claim which would entitle [them] to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957); see Sparrow v. United Air Lines, Inc., 216 F.3d 1111, 1113 (D.C.Cir.2000). We review the dismissal of a complaint de novo, “view[ing] the facts presented in the pleadings and the inferences to be drawn therefrom in the light most favorable to the nonmoving party.” Peters v. Nat'l R.R. Passenger Corp., 966 F.2d 1483, 1485 (D.C.Cir.1992) (quotation marks omitted).

[11]*11Paul Jung, M.D., Denise Green, M.D., and Luis Llerena, M.D., (“plaintiffs”) brought suit in May 2002 against a number of teaching hospitals, medical schools, and non-profit associations (collectively, “defendants”) involved in graduate medical education, challenging the way medical students are assigned to residency programs by one of the defendants, the National Resident Matching Program (“Matching Program”). The single-count complaint alleged that defendants participated in a conspiracy, in violation of the Sherman Act, 15 U.S.C. § 1, to “illegally restrain competition in the market for resident physician services” by “(a) stabilizing wages below competitive levels by exchanging competitively sensitive information regarding resident physician compensation and other terms of employment; (b) eliminating competition in the recruitment and employment of resident physicians by assigning prospective resident physician employees to positions through the National Resident Matching Program ...; and (c) establishing and complying with anti-competitive and accreditation standards and requirements.” Compl. in 02-0873 at 5-6.

On April 10, 2004, the Pension Funding Equity Act of 2004, Pub.L. No. 108-218, 118 Stat. 596 (2004) (the “Act”), became law. Section 207 of the Act, 15 U.S.C. § 37b, not only exempts “graduate medical education residency matching program[s]” from antitrust laws, but it also bars evidence of any participation in such programs in support of a claim in federal court that antitrust laws have been violated, id. § 37b(b)(2). A savings clause provides that Section 207 does not exempt from antitrust laws “any agreement on the part of 2 or more graduate medical education programs to fix the amount of the stipend or other benefits received by students participating in such programs,” id. § 37b(b)(3). By its express terms, Section 207 applies to suits pending when it became law. Id. § 37b(c).

Within days of enactment, defendants moved to dismiss the complaint pursuant to Federal Rules of Civil Procedure 12(b)(6) and 12(c). On August 12, 2004, the District Court granted the motion and dismissed the complaint with prejudice, holding that plaintiffs’ claim relied entirely upon the Matching Program and was, therefore, barred by Section 207.

We affirm the District Court. The Matching Program is the basis for plaintiffs’ complaint, and it falls squarely within both the exemption and bar of Section 207. The Act defines the term “graduate medical education resident matching program” by reference to the very program at issue in the complaint: “the National Resident Matching Program.” 15 U.S.C. § 37b(b)(l)(C). It is hard to imagine a more precise fit between the language of a statute and a lawsuit. Plaintiffs attempt to recast the allegations of the complaint as a price-fixing scheme independent of the Matching Program so that they can claim the protection of the savings clause, id. § 37b(b)(3). They argue that the savings clause permits the use of evidence of participation in the Matching Program in a price-fixing case. We agree with the District Court that the complaint’s allegations are inextricably intertwined with the Matching Program and thus prohibited by Section 207. “The complaint does not allege a price-fixing conspiracy, but a single overriding integrated antitrust conspiracy with the Match as its centerpiece.” Op. in 02-0873 at 15. Plaintiffs fail “to demonstrate that absent the Match allegations, the Court in fact would have come to the same conclusion that ‘a conspiracy existed.’ ” Id. at 16. We also agree that Section 207’s evidentiary bar, which applies to “Fany claim or action alleging a violation [12]*12of the antitrust laws,” 15 U.S.C. § 37b(b)(2) (emphasis added), applies to plaintiffs’ claim because the bar “forbids invocation of the Match program as evidence in any antitrust suit, including one involving allegations of price-fixing.” Op. in 02-0873 at 18.

Plaintiffs’ constitutional argument is likewise unavailing. They argue that Section 207 violates the separation of powers because “Congress has attempted to place a thumb on the scales in pending litigation.” Pl.’s Br. in 04-7138 at 31. But Congress has done nothing more here than amend the antitrust laws by carving out a safe harbor for participation in “graduate medical education residency matching program[s].” Congress may amend substantive laws, even when doing so affects pending litigation. See Robertson v. Seattle Audubon Soc’y, 503 U.S. 429, 438, 112 S.Ct. 1407, 118 L.Ed.2d 73 (1992) (upholding a statute enacted in response to pending environmental litigation because it did not “direct any particular findings of fact or applications of law, old or new,” but rather amended the governing substantive law). Congress may also change laws governing how evidence may be used. See Tot v. United States, 319 U.S. 463, 467, 63 S.Ct. 1241, 87 L.Ed. 1519 (1943) (“Congress has power to prescribe what evidence is to be received in the courts of the United States.”). Plaintiffs rely upon United States v. Klein, 80 U.S. (13 Wall.) 128, 20 L.Ed. 519 (1871), a case in which the Supreme Court struck down a statute that limited the scope of the President’s pardon power in an effort to change on appeal the result of cases that had already been decided. ‘Whatever the precise scope of Klein, however, later decisions have made clear that its prohibition does not take hold when Congress ‘amend[s] applicable law.’ ” Plaut v. Spendthrift Farm, Inc.,

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Bluebook (online)
184 F. App'x 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jung-v-association-of-american-medical-colleges-cadc-2006.